🎁What the Tigers Say | Is Nasdaq's Dip a Signal of Market Reversal?

Major United States indices ended on Tuesday (Mar 5) in a slump, as key tech names lost ground and traders looked ahead to remarks by the central bank chair later in the week.

The tech-heavy $NASDAQ(.IXIC)$ lost 1.7%, it has gone 303 trading sessions without a pullback of 2.5% or more, the third-longest stretch since 1990.

Is this only a small pullback, or the start of a reversal for the whole market?

Below are some insights from Tiger @ZEROHERO, @Mrzorro and @Shyon. Which opinions do you agree with？

🎁Special Notes: Whoever showed up on the” What the Tigers Say” column will receive 100 Tiger Coins and an exclusive interview invitation to honor your contribution.

Click titles to read the full analysis:

1. @ZEROHERO: Nasdaq Achieved More Than 300 Days Without Significant Pullback 😅

Key Points:

• ⚠️ Trading tips: shorted from 18328 and added more positions. Looking to add under 18180 later on if market is sluggish. Market is pending Jerome Powell to testify on Wed & Thu. Likely to chop until then for a clearer direction. Take care! 🙏

• The Nasdaq-100 has been achieving these records without the help of Apple Inc., (AAPL) once considered an indispensable constituent of the index. While Apple was down 9.1% so far this year, the Nasdaq-100 was up 8.3%, according to FactSet. Divergence in the performance of a popular group of megacap technology stocks has been growing since the beginning of 2024, while all of the so-called Magnificent Seven tech stocks helped drive gains for the S&P 500 in 2023.

• The weakness in several megacap names weighed on the Nasdaq on Monday. Both the Nasdaq-100 NDX, which includes the 100 largest nonfinancial stocks trading on the Nasdaq, and the Nasdaq Composite COMP, which includes more than 3,000 stocks listed on the exchange, finished 0.4% lower.

2. @Mrzorro: Market Lets Loose and Drops While Waiting For Powell

Key Points:

• Now it's a new week, "and now we're back to freaking out," Forrest said in a phone interview. This time, the focal points are Federal Reserve Chair Jerome Powell's two-day testimony before Congress on Wednesday and Thursday and Friday's February jobs report. 

  Fed Chair Jay Powell will deliver testimony to Congress on Wednesday and Thursday, which, together with Friday's publication of the February nonfarm payroll report, may cement expectations regarding the likely trajectory of Fed policy. 

3. @Shyon: Global markets were generally mixed ahead of the Fed's important remarks.

Key Points:

• U.S. markets were broadly lower on Tuesday, with the S&P 500 and Nasdaq Composite down -1.0% and -1.7%, respectively, as investors weighed in on this week's economic data and comments from Federal Reserve Chairman Jerome Powell. Investment was previously suspended.

• U.S. services sector growth slowed to 52.6 in February as employment fell, but a gauge of new orders rose to a six-month high.

• The Caixin Global Services Purchasing Managers' Index (PMI) fell to 52.5 from 52.7 in January, with business confidence slowing for a second consecutive month and companies cutting jobs for the first time since November.

• Maybe some people are taking investments off the table ahead of Powell's speech to take profits on high-flying areas before we get a lot of labor market data.

Questions for you:

Is this only a small pullback, or the start of a reversal for the whole market?

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⏰Duration

• 13 Mar (24pm EDT)